Editorial | until there is a better option, hong kong’s us dollar peg is here to stay
Editorial | until there is a better option, hong kong’s us dollar peg is here to stay"
- Select a language for the TTS:
- UK English Female
- UK English Male
- US English Female
- US English Male
- Australian Female
- Australian Male
- Language selected: (auto detect) - EN
Play all audios:
The 40th anniversary this week of the Hong Kong dollar peg to the US dollar has revived questions about its future, such as whether the city should peg its currency to the yuan. The old
saying, “if it isn’t broken don’t fix it” is not entirely inappropriate. Advertisement The reasons for introducing the US dollar peg in 1983 have not changed. At the time the city faced a
financial crisis amid anxiety about its future after the handover in 1997. The local currency needed – and still needs – an anchor, and the US dollar remains the most suitable, being the
most commonly used and liquid. The biggest argument against the yuan remains that it is not convertible on the capital account. The currency peg represents a trade-off between several
things. Then, as now, the stability of the exchange rate was paramount to a small and open economy, with heavy international trade and financial exposure. So the government at the time
decided to peg to the US dollar, which meant giving up autonomy in monetary policy. Advertisement The peg has since underpinned a stable exchange rate that has shielded the local economy
from shocks such as financial crises and survived attempts by speculators to break it.
Trending News
Uk-based naturemetrics lands over €14 million to bring nature data to the boardroom | eu-startupsThe impact of human life on earth is under increasing scrutiny. Across the world, targets are being set and plans put in...
James bond: new 007 shock as chances of controversial casting increaseJames Bond fans are on tenterhooks waiting to find out who will replace Daniel Craig when he departs as 007. Now, odds h...
The AARP Minute: June 1, 2020Memorial Day Sale! Join AARP for just $11 per year with a 5-year membership Join now and get a FREE gift. Expires 6/4 G...
The writers of fx's atlanta: 'we're not interested in being sesame street'The writing team behind Atlanta created one of fall's highest-rated shows and managed to squeeze in storylines abou...
Sudoku | Newcastle Herald | Muswellbrook Chronicle | Muswellbrook, NSWAdPuzzlesSudokuPuzzlesSudokuSectionsMy RegionHome PageNewsLocal NewsPropertyNSWHistoryPoliticsRuralNationalBushfiresWorl...
Latests News
Editorial | until there is a better option, hong kong’s us dollar peg is here to stayThe 40th anniversary this week of the Hong Kong dollar peg to the US dollar has revived questions about its future, such...
A Wet and Slippery Census - Los Angeles TimesThink of it as “The Crocodile Hunter”--but on a smaller scale. For the past several months, biologists from the Santa Mo...
Samsung galaxy s25 series photos and features leak online — stoking anticipation for unveilingSamsung introduced its new Galaxy S25 series of smartphones that are expected to rival Apple’s latest editions of the iP...
Spain Strikers Dispersed - Los Angeles TimesL.A. CRIMES: WHAT POP CULTURE GETS WRONG ABOUT THE MENENDEZ BROTHERS Madison McGhee is joined by legendary Dateline host...
Carnegie Endowment for International Peace | Carnegie Endowment for International PeaceGlobal LocationsresearchemissaryaboutexpertsmoresupportprogramseventsblogspodcastsvideosNewslettersAnnual Reportscareers...